WNBA Expected To Lose $50 Million This Season Despite Popularity Bump: Report

Despite a massive uptick in popularity and interest, the WNBA is expected to continue its streak of losing money, according to the Washington Post. 

The league has operated at a loss in every year of its existence and survives by being subsidized by the WNBA. This year, the Post reports that the league is going to lose about $50 million. 

"On average [we’ve lost] over $10 million every year we’ve operated," NBA Commissioner Adam Silver told The Associated Press in 2018 when speaking about WNBA finances. 

This is the 28th year of the league's existence, which means the NBA has sunk over $250 million into the league over the past nearly 3 decades with no return on investment. 

According to a report from the Washington Post, the WNBA is expected to lose around $50 million this season, even though ratings and attendance are up.

(Steph Chambers/Getty Images)

Now that the WNBA is gaining popularity, it's looking to break free from the NBA to sell its own TV rights. 

It's unclear how that might look, but it seems unfair not to cut the NBA heavily into that deal, since the NBA is really the only reason that the WNBA came into existence and certainly the only reason it still exists despite massive losses over 25+ years. 

"The truth is, this league would be hard-pressed to exist without the NBA," one anonymous WNBA team executive told the Washington Post. 

That's an understatement. The NBA has always funded the WNBA, so they could show that they care about women's basketball. Losing the money was worth it because the WNBA provided excellent PR for the league. 

I can't imagine another company taking hundreds of millions of dollars in losses on a business and continuing to operate that business for over two decades. 

Now, we have to remember that the WNBA was always going to lose money this season, even with Caitlin Clark and the increase in popularity. These leagues make most of their money from TV deals and the WNBA is still under an old deal. Thus, the increased ratings are helpful, but they need a new, more lucrative deal. 

Caitlin Clark has helped draw a lot of new interest in the WNBA, but it's not going to pay off financially as quickly as many might assume.

(Photo by G Fiume/Getty Images)

Plus, they added charter flights for players, which costs around $25 million per season, according to the commissioner. Attendance is up, and that helps, but everything hinges on them getting a vastly superior TV deal.

Though, the other thing to keep in mind, is that the WNBA players can opt out of their Collective Bargaining Agreement next season, and they almost certainly will. With all the public pressure on the league to pay players more, that has to factor in, as well. 

All of this is to say that it's a complicated situation. Will the WNBA eventually turn a profit? Most likely. But can they create a thriving business that generates millions of dollars in revenue? That depends on if this newfound popularity can be sustained, or if it's just a blip on the radar. 

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.